Kim Lost $1.26 Million While Promoting EthereumMax
Is there anyone in the world who just not knows Kim Kardashian? Absolutely not! Kim is famous for being famous. According to federal regulators, the reality star recently abused that fame when she promoted a cryptocurrency, EthereumMax to her more than 200 million followers on Instagram in May 2021. In addition to that, the US Securities and Exchange Commission charged Kim on Oct 3 for failing to disclose that she was paid $250,000 for the Instagram post. She wrote in that post that: The post further linked out to EthereumMax’s website where users could buy the coins. Many celebrities were a part of the promotion of its cryptocurrency. However, Kardashian’s promotion stands out because she endorsed an almost completely unknown cryptocurrency and the best part is that her millions of followers might’ve invested based on Kardashian’s association with it alone. The sad piece of news is that EthereumMax lost all of its value. It was a bust and anyone who invested in it likely lost their money. The coin, which was worthless before Kardashian posted about it on Instagram, quickly increased in value by 82% to $0.00000051 per coin. However, it only took days for the price to plummet. Under the Securities Act, any paid promoter of security has to disclose not only that they were paid and by whom, but how much. Kim wrote “#ad” at the bottom of her Instagram post, but that wasn’t enough to appease regulators. As a result of that, she is fined. In settling the charges, Kim agreed to pay a $1.26 million fine. She will cooperate with investigators and will not promote crypto securities for three years. Also Read: Okara Woman Commits Suicide After Her Doctored Photos Went Viral (phoneworld.com.pk)
